EMA Breakout, 1st retest, Peak Breakout

The EMA Breakout, 1st retest, Peak Breakout indicator is a trend-following tool designed to identify high-probability trade entries by combining moving average breakouts with structural confirmation. It streamlines the process of identifying a three-step price action sequence: a breakout of the Exponential Moving Average (EMA), a successful retest of that average, and a final breakout of the local peak formed during the retest phase.

Usage

The script is designed for use across various markets, including Equities and Forex, with a recommended 15-minute chart resolution. Users should look for the following visual cues to interpret market shifts:

• Bullish Signal (Green Circle): This represents the first upward peak breakout occurring after a confirmed retest, provided the previous directional breakout was downward. This serves as a primary long entry signal.
• Bearish Signal (Red Circle): This represents the first downward peak breakout occurring after a confirmed retest, provided the previous directional breakout was upward. This serves as a primary short entry signal.
• Bullish Background: Indicates a higher peak breakout candle following a confirmed retest.
• Bearish Background: Indicates a lower peak breakout candle following a confirmed retest.

Details

The indicator logic follows a strict three-parameter confirmation process:

1. EMA Breakout: Price must cross and close on the opposite side of the EMA.
2. Retest: Price returns to touch or interact with the EMA without a full reversal, establishing a local "peak" (fractal high or low).
3. Peak Breakout: Price breaks the high/low of the retest phase. This confirmation helps filter out "fakeouts" where price crosses the EMA but fails to sustain momentum.

The script utilizes fractal-based pivot detection to identify these peaks, ensuring that the breakout levels are mathematically significant based on the surrounding price action.

Settings

Main Settings

• Calculate on EMA: Toggles between EMA and SMA for the baseline calculation.
• EMA Length: Sets the period for the moving average (default is 20).
• EMA Source: Determines the price data used for the average (default is Close).
• Enable Successive Breakouts: Allows the indicator to highlight multiple peak breakouts in the same direction.
• Enable Correct Retest: Toggles the visibility of specific retest confirmation shapes.
• Enable EMA Breakout: Toggles visual markers (crosses) for the initial moving average breakout.

Pivot Settings

• Unconfirmed Pivots Mode: Choose between "highest/lowest" or "fractals" for identifying local peaks.
• Keep Same Bar Pivots: Determines how the script handles cases where a high and low occur on the same bar.
• Fractal Pivots Left/Right Bars: Adjusts the lookback and lookforward periods for identifying pivot highs and lows (default is 4).

FAQ

How do I use the signals for entries?

Long signals are triggered when a green circle appears, signaling a confirmed peak breakout after an EMA retest. Short signals are triggered when a red circle appears.

Which markets does this work best on?

While compatible with any ticker, the logic is optimized for Equity and Forex markets where trend-and-retest patterns are common.

How can I access this tool?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.